Bourse rebounds

Saturday, 2 March 2013 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Sri Lankan stocks edged up on Friday from a two-month low, led by large caps in thin trading volume, but stockbrokers said investor sentiment was hit by political and economic worries. The main share index rose 0.3%, or 16.79 points, to 5,652.69, from its lowest since 28 December.

“Local retailers are worried about what could happen to Sri Lanka in Geneva UNHRC sessions, while foreigners are concerned about the economy,” a stockbroker said on condition of anonymity.

Sri Lanka is facing a United States-sponsored resolution in the United Nations Human Rights Council (UNHRC) sessions over human rights concerns in the final stages of its 2009 defeat of Tamil Tiger separatists.

Stockbrokers said local investors fear that resolution could result in sanctions that could hit the economy. The market has fallen 3.14% in thin volume since the IMF on 13 February said Sri Lanka was facing slow growth, high inflation and lower tax revenue risks.

Cigarette manufacturer Ceylon Tobacco Co. rose 5.08% to Rs. 759.20. The day’s turnover of Rs. 673.92 million ($ 5.28 million), was well below this year’s daily average of Rs. 1.05 billion.

Foreign investors sold a net Rs. 324.35 million worth of shares, extending the net foreign outflow so far this year to Rs. 539.16 million. The rupee ended steady at 127.40/50 to the dollar after a state bank, through which the Central Bank directs the market, sold dollars at a flat rate of 127.50, dealers said.